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Specialised entities and specialised transactions

2.3 Disallowed accounting choices within the IFRS for SMEs Standard

 The non-controlling interest at the acquisition date cannot be measured at fair
value.

 The revaluation model cannot be used for intangible assets.

 The cost model for investment property is only used if the fair value cannot be
determined reliably.

2.4 Simplifications within the IFRS for SMEs Standard

 Borrowing costs are always expensed to profit or loss.

 Depreciation and amortisation methods do not need to be reviewed annually.

 Expenditure on research and development is always expensed to profit or loss.

 Goodwill is amortised over its useful life. If the useful life cannot be reliably
established then an estimate of ten years or less should be used.

 Cumulative exchange differences are not recycled to profit or loss on the
disposal of an overseas subsidiary.

 Simplified techniques are permitted when measuring a defined benefit
obligation.

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